Free mortgage refinance calculator. Compare your current home loan with a new rate to see potential monthly savings, annual savings, and the break-even point after switching costs. Helps you decide whether refinancing is worth it based on your specific situation.
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Monthly Savings
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Break-Even
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To recover switching costs
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Refinancing means replacing your existing home loan with a new one, typically at a lower interest rate. With Australian mortgage holders collectively owing over $2 trillion, even a small rate reduction can translate to significant savings. But refinancing isn't free — you need to weigh the savings against switching costs.
The most important number in refinancing is your break-even point: how many months of savings it takes to recover the costs of switching. If your break-even is 6 months and you plan to keep the loan for 10+ years, refinancing is almost certainly worthwhile. If it's 3+ years, think carefully about whether your circumstances might change.
Beyond obvious fees, watch for: fixed-rate break costs (can be thousands), clawback periods on cashback offers (2-4 years), losing offset account balances during the switch, and higher ongoing fees that erode rate savings. Always compare the total cost including the comparison rate, not just the headline rate.
Consider refinancing when rates have dropped significantly (0.5%+ below your current rate), when your fixed rate period is ending, when your property value has increased enough to remove LMI, or when you want to access equity. Always factor in switching costs and calculate the break-even point.
Common refinancing costs include: discharge fee from your current lender ($150-$400), application fee for the new loan ($0-$600), property valuation ($200-$600), settlement/legal fees ($200-$500), and break costs if exiting a fixed rate (which can be thousands). Some lenders offer cashback to offset these costs.
The break-even point is the number of months it takes for your monthly savings to cover the total switching costs. For example, if refinancing costs $2,000 and saves you $200/month, your break-even is 10 months. Only refinance if you plan to keep the loan longer than the break-even period.
Yes — this is called a 'rate review' or 'retention offer'. Contact your current lender and ask for a better rate. Many lenders will match competitor rates to keep your business. This avoids switching costs entirely. Always try this before refinancing externally.
Some lenders offer cashback amounts ($2,000-$4,000+) when you refinance to their product. While attractive, always compare the total cost of the loan (rate + fees) over the full term, not just the cashback amount. A slightly lower rate with no cashback may save more long-term.
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